July 5, 2022
Conflict in Ukraine sends input prices for agriculture up nearly 10%
The European Union's statistics office said Russia's invasion into Ukraine has sent prices for key products and inputs such as livestock feed up nearly 10%, Reuters reported.
Eurostat data showed in the first quarter of 2022 compared to the last quarter of 2021, the average price of goods and services currently used in agriculture increased by 9.5%. This increase included price increases of 21.2% for fertilisers and soil improvers, 17.4% for energy and lubricants, and 9.2% for livestock feed.
According to Eurostat, the average price of agricultural output rose by 6% during the same quarter.
The invasion of Ukraine by Russia, both of which are significant agricultural exporters, has disrupted the flow of fertiliser and edible oil from the Black Sea region, pushing up the price of wheat, soy, and corn earlier this year to almost record levels.
Ukraine is a key exporter of corn and sunflower oil.
When compared to the first quarter of 2021, the average cost of fertiliser and soil conditioners nearly doubled, while the cost of energy and lubricants increased by 55.6%. The average cost of livestock feed increased by 22.9% as a result of rising cereal and energy prices.
Data from Eurostat also showed prices for agricultural products like cereals, oilseeds, cattle, poultry, and milk jumped between 51.7% to 21.4% during the same time period last year.
The EU executive maintained its outlook for record exports but reduced its forecast for soft wheat production in the bloc in 2022–2023 to a level that is significantly below that of the previous season.